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| Economy |
| The Dumpster for Toxic Euro Sovereign Debt |
| 2011-11-11 |
 Some might be wondering why the euro zone rescue focus turned to saving banks as opposed to saving governments. The reasons are illuminating. Consider the following: When a government has a debt bulge, the debt must be held as someone else's asset. The designated chump to hold a large portion of it has been the banking system, as its portfolio of assets is easily manipulated by bank regulators. This is how it works.RTWT |
| Posted by:phil_b |
| #5 The whole Ponzi scheme is now finished - Governments, banks and bonds. The great social experiment that would provide cradle to the grave welfare has come to an end. The zombie just needs a stake through the heart to stop it re-resurrecting itself. Past savings have been consumed, present earnings are insufficient and the rainbow tinged projections for tomorrow are turning into dust. Buy plenty of precious metals and stock up on ammo, as much as you can afford. |
| Posted by: tipper 2011-11-11 18:04 |
| #4 Perennial wisdom, from Frederic Bastiat: Man can live and satisfy his wants only by ceaseless labor; by the ceaseless application of his faculties to natural resources. This process is the origin of property. But it is also true that a man may live and satisfy his wants by seizing and consuming the products of the labor of others. This process is the origin of plunder. --"The Law" When plunder has become a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that glorifies it. -- "Economic Sophisms" Still waiting for a presidential candidate that is willing to do something about this. |
| Posted by: Anguper Hupomosing9418 2011-11-11 12:37 |
| #3 Getting Worse. The credit bubble let frauds hide. |
| Posted by: Bright Pebbles 2011-11-11 10:45 |
| #2 I enjoyed this article. Explains some of the tricks used these days. More kick the can. Difficult subject to present clearly as he has done. Works as long as people keep their money in the bank, the real chumps. |
| Posted by: Dale 2011-11-11 08:50 |
| #1 Banks are incented by regulators to hold âsafeâ assets as a way of making them less vulnerable to failure. Butâand youâve probably already guessed itâregulators designated euro government bonds and even subprime residential mortgage securities as the banking systemâs âsafeâ assets. Which gets back to the base problem that 'regulators' aren't doing 'their' job, but the bidding of the people/governments over them. Consequently, regulators aren't. |
| Posted by: Procopius2k 2011-11-11 08:41 |